Indian central bank steps up rupee support, soaring NRI deposits bolster firepower

A man walks past the Reserve Bank of India (RBI) logo outside its headquarters in Mumbai, India, June 6, 2025. REUTERS

MUMBAI, Sept 2 (Reuters) – The Reserve Bank of India has stepped up its support for the rupee in recent sessions, shielding the currency from a surge in oil prices and rising U.S. Treasury yields, with a ​flood of deposits from non-resident Indians bolstering the central bank’s firepower.

The rupee has rallied past ‌the 95-per-dollar mark to a two-month high, catching much of the market by surprise given the headwinds facing the currency.